I don't mean the System Administrator account, just the initial account created when I signed up for OnDemand. I used a generic name like ondemandadmin but now I have added other users as administrators so having generic one doesn't make sense.
I wound't think it is a problem if I delete but just want to make sure.
You should be able to delete this initial user without any issue. I would make sure that you have another user with all the proper admin permissions first. If your instance is every fully reset, this user will be added back (since it's the only user you would have access to).
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